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Station still in talks on debt restructuring
Company seeking to extend forbearance period until July 17
Published Monday, June 22, 2009 | 7:30 a.m.
Updated Monday, June 22, 2009 | 8:09 a.m.
Las Vegas locals gaming leader Station Casinos Inc. today said it remains in talks on restructuring its debt.
Since Feb. 3, the company has been in discussions with noteholders and lenders on a proposal in which they would make concessions and affiliates of the company's owners -- the Fertitta family and Colony Capital -- would invest another $244 million in the company.
Since then, the lenders and noteholders have granted forbearance agreements in which they agreed not to take action against Station because of the company's decision not to make certain debt payments, putting it into default.
The last forbearance agreement officially expired May 29, but the parties had agreed to continue discussions and have made progress since then, Station spokeswoman Lori Nelson said.
Now, Station is formally seeking to extend the forbearance period until July 17.
"The lenders currently are seeking requisite approval for the extension of the forbearance agreements, which have expired," Station said today in a filing with the Securities and Exchange Commission.
Under the Feb. 3 plan, the company would file for a prepackaged bankruptcy reorganization that would keep the Fertittas and Colony Capital in control of the company.
Station is proposing the reorganization because the recession has reduced spending at its properties, hurting its ability to make payments on its debt totaling some $5.7 billion.
Discussion: 10 comments so far…
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Enough time already. It is quite apparent that Stations has put an offer on the table that asks bondholders to take the brunt of the collapse and Stations will not budge from their position from several months past. If I were a bondholder, I would file foreclosure on Stations and force sale of properties to address debt. Stations has had more than enough time to come to an agreement, but in order for an agreement to come to fruition, BOTH sides need to make concessions.
The Banks should have them foreclose. This has been going on too long!
The several years out economic horizon here is fraught with gloomy uncertainty.Things will not improve soon and the future for this casino group is not bright. I suspect all the players are hoping for a turn-around that will increase cash flow and thereby resolve the situation. Their delay may haunt them.
Forclose all the Station casino's, do Vegas a favor!
takes longer to settle this case than build a new 40 floor casino. enough, sell off these properties. what a shame as manegment has run a nice group into the ground. and as usual the workers will be left without work while slimes at the top get theirs.
These operations would be great under Boyd Gaming control!
To "American Gaming Guru" i.e. "These operations would be great under Boyd Gaming control!"
Wrong. Boyd blew it with their internal conflicts and the all too incompetent John Lin, et al, who was running a sterile project of yet ANOTHER set of ugly glass towers trying to complete with the CityCenter towers, void of any personality except...hmmmm call me crazy...what made Vegas take-off in the late 80s and 90s by Wynn.
Vegas is now the victim of group think. Look at the problem Glenn Schaeffer just exited from...another glass tower project... that looks just like...um...all the new glass towers going up around the city. Getting a theme here? I can repeat this as many times as needed to tell them to get rid of their crappy architects who drive their BMWs and dress in cool black business slacks sporting trimmed 50-something beards telling us how their architectural designs are so cool. Boring.
Boyd blew it with Echelon. Five stories out of the ground: rusting. At least RedRock, built by Station Casinos, is the best value around. And it has personality.
But Boyd did nothing but blow it with Echelon. Look at the brochure. It looked like everyone came out of Vogue Magazine. Where is the FUN in their planned casinos of late.
Me, I think all the untalented CEOs of Vegas need to figure out why Treasure Island, Luxor and the entire personality and reinvention of Vegas worked a decade ago. Even Excalibur, as cheap looking as it is, helped make Las Vegas an attraction, just like NYNY and the Venetian and Paris.
As far as I am concerned, they need a lot of new blood in the top offices there...maybe some new folks who won't put in yet another Cirque du Soleil show or some *yawn* Celine Dion or very bad Elton John show that was so, so disappointing.
New blood needed. New thinking needed. Bye Keith Smith of Boyd. Bye Glenn Schaeffer. You are *poof* gone.
Vegas needs to re-invent...and REFINANCE...in a hurry.
yeah - boyd gaming should have never taken down the stardust - they owned it completely no bank stuff - the rooms were still in great shape - my host (wont put his name in here) told boyd gaming they were crazy to take it down - that was way before the economy took a crapper. Now its just a memory on a corner. Trying to keep up with the jones. Anyway - My host went to the Palace Station - It was like the stardust - small - but now he isnt a host there - just a pit boss - took a big hit in pay and such - not even sure if he is still working there or not. Went to palace in March for nascar weekend and didnt win anything - not alot of people either - wonder what it looks like now?? Going back in October and forget the stations - going back to my old spot - Good OLD Downtown - those places are still there - the rooms might not be as nice - but who cares - you just sleep in them - Those older casinos are the ones probably making the money - ever hear about them not paying on bonds?? They probably own them -
colony capital is scrambling everywhere to cover their late payments with not a lot of success. they need a miracle. station is just one of their casino investments that is in trouble along with a host of real estate disasters.
As long as Station Casinos will not revoke its policy to add a silly "Resort amenity fee" on top of all taxes and fees to the hotel bill, every Las Vegas visitor with halfway functionable common sense and logical thinking will stay and play elsewhere, period. You simply should not sell stuff to your patrons that they actually don't want. Selling high speed internet to somebody who has not even arrived with a computer and has no intentions to check his email every morning, that's just unfair. And who gives a damn about a USA today copy hanging on his door when you get out in the morning, ready to check out the machines?
Hey, Vegas, wake up, but if you take a closer look what's going on at Station casinos in the morning? On the floors, you find dozens of these white plastic bags with the newspapers that nobody wants. It's about like selling people something they don't want. Or thinning the offer as demand goes back, just what Rolex is doing right now by buying back their own watches from the dealers....Unfair market policy, in my eyes.
The best way for Station Casinos would go under Chapt 11 and do re-financing under a lower level, and perhaps new management. Or accept Boyd's offer and get rid of a few of their properties they can't manage profitable. There's less gambling going on in town, and therefore less money flowing in, cut and dry. The cake has become smaller, not bigger. And simply by squeezing the lemon even more won't solve the problems. Patience and right moves, not unfair ripping-off, that's the way for the future.
From Switzerland